Tembo secures shareholding in Orion

PERTH – ASX-listed junior Orion Minerals has welcomed a A$3-million investment from equity group Tembo Capital Mining Fund, which would see the UK group hold a combined 19.6% share in Orion.

In April this year, Orion flagged the possible investment by Tembo, as well as the formation of a strategic relationship.

The company on Wednesday told shareholders that Tembo has now agreed to subscribe for 125-million shares, at an issue price of 2.4c each, for a total capital investment of A$3-million. The placement would result in Tembo holding a 12.6% share in Orion, but when combined with its convertible notes, the firm’s shareholding would increase to 19.6%.

The share issue has already been approved by shareholders, with Orion also retaining its 15% placement capacity.

Meanwhile, Orion is in the process of reviewing the amount of funding required to rapidly advance its Prieska zinc-copper project, in South Africa, through to the completion of a feasibility study, leading to a development decision.

Following this review, the company will determine what capital raising initiatives would be required, with Tembo already indicating its support.

Orion said on Wednesday that the company was planning a rights issue to raise additional equity, as soon as reasonably practicable.